Increasing Efficiency and Productivity
- Created by: BenHyde_
- Created on: 08-05-16 15:18
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- Increasing Efficiency & Productivity
- Labour Productivity
- Output per period/no. of employees
- Higher the productivity, the better
- it influences efficiency
- How to improve
- Improving motivation, bonuses
- Training
- Technology can improve speed
- Output per period/no. of employees
- Lean Production methods increase efficiency
- Keeps waste to a minimum
- Inefficient methods increase costs
- It helps achieve operational aims, reducing costs
- Methods such as JIT production and time based management
- Keeps waste to a minimum
- JIT production
- Aims to reduce waste by having as little stock possible
- Raw materials come in through one door and go out the other, all in time for customers
- Efficient stock control
- Kanban is JIT system of triggering repeat orders, when they reach a certain amount of stock they re-order
- Advantages
- Storage Costs reduced
- Cash flow improved
- Less waste as there's less out of date or damaged stock
- Businesses can cope with changes in demand
- Disadvantage
- Customers can't be supplied during strikes
- Suppliers have to be reliable because there isn't much stock to keep going
- Aims to reduce waste by having as little stock possible
- Time based management
- Aims to reduce wasted time
- They van then compete on time as well as prices
- Companies have to be flexible
- Communication is essential, there needs to be trust and workers need to be skilled, training is important
- Advantages
- Reduces lead time, time of order and time of delivery, cost of holding stock falls
- Customer will be happier
- drives innovation by decreasing R&D time
- Reduces lead time, time of order and time of delivery, cost of holding stock falls
- Disadvantage
- Some may put speed over quality
- Labour Productivity
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